Nigeria’s Federal Government allocates N16.3 trillion in the 2025 budget for debt obligations, reinforcing investor confidence with successful Eurobond issuance.
The Debt Management Office (DMO) has announced that the Federal Government has made substantial budgetary provisions to address Nigeria’s foreign and local debt obligations, with a planned N16.3 trillion allocation in the 2025 budget.
This sum will be used to service both external and domestic debts, forming part of the overall proposed expenditure of N49.7 trillion for the year.
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According to the DMO, Nigeria’s debt management strategy aligns with relevant legislation, regulations, and international standards, underscoring the government’s commitment to managing its debt sustainably.
The agency highlighted that the country has consistently met its debt obligations, which has earned it a positive reputation among investors both domestically and internationally.
One of the recent demonstrations of investor confidence was Nigeria’s successful issuance of $2.2 billion in Eurobonds on the international capital markets.
The offering, which received over $9 billion in subscriptions, showcased the strong demand for Nigeria’s debt instruments.
Investors from diverse regions, including the UK, North America, Europe, Asia, and the Middle East, participated in the issuance, reinforcing the nation’s positive macroeconomic policies.
The DMO also pointed out that the transaction marked a significant milestone by creating opportunities for Nigerian banks and corporate entities to access the Eurobond market.
This growing interest in Nigeria’s debt instruments, including Federal Government bonds, Sukuk bonds, and other securities, reflects the country’s adherence to best practices in debt management.
Assurances have been made that sufficient provisions are in place through the Medium-Term Expenditure Framework (MTEF) for the 2025–2027 period, as well as the annual budgets, to ensure the country can meet its debt service obligations.
The DMO noted that the Federal Government’s borrowing activities have also played a key role in deepening the domestic capital market, making it more attractive to both local and international investors.
Finance Minister Wale Edun highlighted that the successful Eurobond issuance was a testament to the increasing confidence in the government’s efforts to stabilise the economy and position Nigeria for sustainable socio-economic development.
Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, echoed this sentiment, noting that the strong response to the Eurobond issuance reflected growing investor confidence in Nigeria’s economic resilience and creditworthiness.
With these developments, Nigeria is strengthening its position in global financial markets and continuing its push to diversify funding sources while maintaining fiscal responsibility.
